TSX rises amid broad-based gains; ends week 1.2 percent higher

Fri May 20, 2016 5:05pm EDT
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index rose on Friday as financials and energy led broad-based gains, helped by a global rally in stocks as the negative impact of Federal Reserve rate hike speculation faded.

The index rose 1.2 percent for the week, while it has rebounded more than 20 percent from an almost 3-1/2-year low in January. Still it has yet to climb back above the 14,000 threshold.

A relief rally globally gave Canada's market a lift after stocks were pressured by hawkish Fed minutes earlier this week, said Matt Skipp, president of SW8 Asset Management.

Wall Street also closed higher, while major indices in Europe and Asia climbed. [.N]

Shares of Manulife Financial Corp MFC.TO rose 2.1 percent to C$18.79, while the country's major banks also advanced. The overall financials group ended 0.6 percent higher.

Canada's biggest banks are expected to set aside more funds to cover bad loans to the oil and gas sector, eating into their profits when they announce second quarter results next week, analysts say.

Energy stocks rose 0.5 percent even though U.S. crude CLc1 prices settled down 41 cents at $47.75 a barrel.

The market perceives that wildfire-related difficulties faced by oil sands producers in Alberta are transitory, said Skipp.   Continued...

A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014.   REUTERS/Mark Blinch